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What is the business value of security and control?
Business must protect not only their own information assets but also those of customers, employees and business partners. Failure to do so may open the firm to costly litigation for data exposure or theft.
A strong security and control framework that protects business information assets can produce a high return on investments. Strong security and control also increase employee productivity and lower operational costs.
Computer forensics
is the scientific collection, examination, authentication, preservation and analysis of data held on or retrieved from computer storage media in such a way that information can be used as evidence in a court of law. It deal with the following
- Recovering data
- Secure strong of recovery data
- Finding significant information
- Presenting information to a court of law
Health insurance portability and accountability act (HIPAA)
it requires members of the healthcare industry to retain patient information for six years and ensure the confidentiality of those records
Sarbanes-oxley act
it imposes responsibility on companies and their management to safeguard the accuracy and integrity of financial information that is used internally and released externally.
Gramm-leach-bliley act
This act requires financial institutions to ensure the security and confidentiality of customer data.
Tools and technologies for safeguarding information resources
- Identity management (digital identity)
- Authentication (passwords, smart card, biometric authentication, two-factor authentication)
- Firewalls
- Encryption (cannot be read by anyone but the sender + receiver)
2 methods for encrypting network traffic
- SSL (Secure sockets layer) & successor TLS (transport layer security): enables client and server computers to manage encryption and decryption activities as they communicate with each other during a secure web session
- S-HTTP (secure hypertext transformed protocol): protocol used for encrypting data flowing over the internet, but it is limited to individual messages, whereas SSL and TLS are designed to establish a secure connecting between 2 computers.
Digital certificates
data files used to establish the identity of users and electronic assets for production of online transactions.
The internets impact on competitive advantage
Internet technology is based on universal standards that any company can use, making it easy for rivals to compete on price alone and for new competitors to enter the market. Because information is available to everyone, the internet raises the bargaining power of customers, who can quickly find the lowest-cost provider on the web.
Internet of things (IoT)
the growing use of sensors in industrial and consumer products, is an excellent example of how the internet is changing competition within industries and creating new products and services.
Porters five forces
helps analyze an industry and identify its attractiveness (determine competitive intensity).
1. Competitive rivalry
2. The threat of new entrants
3. The threat of substitutes
4. The power of buyers
5. The power of suppliers
- Competitive rivalry
Determined by number or size of competitors, exit barriers. High when competitors are similar in size in power. (no differentiation) High exit barriers= forcing companies to remain in industry even though the profit margins are low. Due to long term loan agreement. results to price wars
- The threat of new entrants
New entrants bring new capacity, but pressure on prizes and costs. You will have to share the pie with more players. This depends on entry barrier, the higher these barriers, the smaller the change of competition. For example high customer loyalty, large capital requirements and government policies.
- The threat of substitutes
Substitute product fulfills the same need, even though they may not look identical. Customers can switch to alternatives. For example coffee and energy drink keep people awake, so if one price goes much lower then the others people might switch.
- The power of buyers
To what extend customers can put the company under pressure, by demanding better quality, results in higher costs for the company. Customers have a lot of power when they are with few people, or they have many alternatives. Customers can compare products online because of the internet. By implementing loyalty programs or product differentiation company’s can lower this power.
